The information systems have grown to great extent these days. It is impossible to think about a business without the management systems. There are different categories of information systems like: management information systems, client management system, retail management system etc. You might be wondering as to – “what is management information systems”. Well the answer behind – “what is management information systems” is as follows. The management information systems or MIS are those which help in managing the information of an organization in a most efficient way. It also provides the people with information related to the decision making process and organizational operations. It mainly concentrates on three things which are:
There are several advantages of using Management Information Systems which are as follows:
- It saves a lot of time.
- The cost of labor is reduced to a greater extent.
- It gives you efficient and easy decision making.
- It helps in managing and analyzing the everyday activities.
- It provides an efficient coordination among the different departments.
- It provides easy and efficient access to the relevant data as well as documents.
- The business or the company will be able to identify their strengths and weakness with the help of employees’ performance, revenue reports etc.
Apart from advantages, there are even disadvantages too, which are as follows:
- It reduces the man power in the organizations.
- The information that is complex will not be summarized effectively.
- The performance levels of the employees might not be 100% right.
- In order to run an enterprise, rich data is required and MIS cannot handle these data efficiently.
- When there is a power failure, the data which are very essential might be lost and hence it needs regular back up.
There are 4 types on management information systems which are as follows:
Transaction Processing Systems: These types of management systems are developed in order to manage all the transactions and are widely used by many popular banks in order to track down all the accounts of the customers. Even super markets use them to know about the status of sales and stock. It also helps the managers to manage all the essential things like: Billing, reports, payments, payroll etc.
Decision support systems: These kinds of systems help the managers in making decisions and it comprises three basic components which are:
ü DBMS: Database Management System which helps you in storing a huge amount of data (rows and columns) associated to the business so that they can be easily accessed by the user.
ü MBMS: Model Based Management System which helps in transforming all the stored data in to information which then can be very helpful in making decisions.
ü DGMS: Dialogue Generation and management System helps the managers who are basically out of computer knowledge. Hence they require a friendly interface in order to build their capabilities. With the help of DGMS, they can help themselves in a lot of ways.
Operation Information Systems: These kinds of systems help to collect the data from the transaction processing systems and help the managers to keep a track on the inventory, performance, sales etc.
Artificial Intelligence and Expert systems: These kinds of systems take the help of human experts to make decisions and are flexible in solving complex problems in an easier way.
Apart from the MIS, the client management system will help a business to have good relationships with the customers and retail management system helps to increase the profits of a business. It helps in proper functioning of the inventory control, barcode scanning, payroll, shop management, ecommerce, follow- up, customer tracking etc.